Environmental Factors Affecting Firm’s Ability to Compete:
Environmental Factors Affecting Firm’s Ability to Compete: A Retail Perspective
Organizations that promote learning are better equipped to handle the ever-changing business environment. Retailers are no different. When an organization’s leadership plans for the future it must take into account principle environmental factors. A company’s ability to compete will be affected by how well the leaders have learned to identify those factors, to demonstrate their company’s significance, and to estimate the extent or magnitude of each of the factor’s impact on the corporate strategy.
Five (5) Principle Environmental Factors and Their Significance
Competitors
Every business has external peers that perform similar functions within their professional discipline. These peers are considered competitors and they are rival producers of goods or services. These competitors contribute to the overall industry by their ability to deliver goods and services of high caliber at competitive prices. Competition is good from a market perspective as it gives consumers choices and provides the businesses and opportunity to create a niche.
Creditors
Most businesses purchases goods and services much like a consumer. However, they do so to large extent on credit as they are able to get discounts or other incentives to buy in bulk. When businesses buy goods and services on credit the business that holds the note or paper is referred to as a creditor. A firm’s power and prestige in domestic markets may be significantly enhanced with the right credit resources. Enhanced prestige can translate into a better negotiating position with other creditors, suppliers, distributors and other important groups.
Customers
Customers are an essential part of any business, without the customer there would be no need for the business. Regardless of the product or service provided, a business must be able to leverage their marketing and production to ensure they satisfy consumer demand. A new
Organizations that promote learning are better equipped to handle the ever-changing business environment. Retailers are no different. When an organization’s leadership plans for the future it must take into account principle environmental factors. A company’s ability to compete will be affected by how well the leaders have learned to identify those factors, to demonstrate their company’s significance, and to estimate the extent or magnitude of each of the factor’s impact on the corporate strategy.
Five (5) Principle Environmental Factors and Their Significance
Competitors
Every business has external peers that perform similar functions within their professional discipline. These peers are considered competitors and they are rival producers of goods or services. These competitors contribute to the overall industry by their ability to deliver goods and services of high caliber at competitive prices. Competition is good from a market perspective as it gives consumers choices and provides the businesses and opportunity to create a niche.
Creditors
Most businesses purchases goods and services much like a consumer. However, they do so to large extent on credit as they are able to get discounts or other incentives to buy in bulk. When businesses buy goods and services on credit the business that holds the note or paper is referred to as a creditor. A firm’s power and prestige in domestic markets may be significantly enhanced with the right credit resources. Enhanced prestige can translate into a better negotiating position with other creditors, suppliers, distributors and other important groups.
Customers
Customers are an essential part of any business, without the customer there would be no need for the business. Regardless of the product or service provided, a business must be able to leverage their marketing and production to ensure they satisfy consumer demand. A new